The price of gold continued to rise on Tuesday for the third consecutive session.
It reached its highest level in more than two months.
This comes as investors await U.S. inflation data that may provide new clues about the path of interest rates.
Spot gold rose 1% to $4,432.74 per ounce.
This is the highest level since June 5.
U.S. gold futures also rose 1.7% to $4,492.60 per ounce.
Analysts believe the rise in gold prices was driven by renewed demand for safe-haven assets and the covering of some short positions.
This was compounded by investors’ fears of missing out on the rally.
Forecasts also suggest that gold could break through its current levels and head toward $5,000 per ounce in the medium term.
Markets are awaiting U.S. consumer price data on Wednesday.
This will be followed by producer price data on Thursday, to gauge the direction of U.S. monetary policy.
Meanwhile, geopolitical tensions are supporting gold prices.
This is particularly true as the dispute between the United States and Iran over negotiations and the reopening of the Strait of Hormuz escalates.
As for other precious metals, silver rose 0.9% to $66.30.
Platinum climbed to $1,765.26, while palladium reached $1,394.
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